Higher Open Called For Hong Kong Stock Market

(RTTNews) - The Hong Kong stock market on Wednesday wrote a finish to the two-day slide in which it had tumbled more than 640 points or 2.6 percent. The Hang Seng Index now sits just above the 25,540-point plateau and it's likely to open to the upside again on Thursday.

The global forecast for the Asian markets is upbeat following the FOMC's rate decision and optimism over future moves. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The Hang Seng finished modestly higher on Wednesday following gains from the technology stocks and properties.

For the day, the index climbed 106.55 points or 0.42 percent to finish at the daily high of 25,540.78 after trading as low as 25,257.61.

Among the actives, Alibaba Group sank 0.56 percent, while Alibaba Health Info vaulted 1.52 percent, ANTA Sports rallied 1.56 percent, China Life Insurance collected 0.89 percent, China Mengniu Dairy climbed 0.70 percent, China Resources Land added 0.36 percent, CITIC tumbled 1.16 percent, CNOOC lost 0.19 percent, CSPC Pharmaceutical surged 3.19 percent, Galaxy Entertainment fell 0.15 percent, Haier Smart Home gained 0.23 percent, Hang Lung Properties advanced 0.56 percent, Henderson Land slumped 0.69 percent, Industrial and Commercial Bank of China dropped 0.65 percent, JD.com eased 0.09 percent, Lenovo was up 0.05 percent, Li Auto stumbled 1.40 percent, Li Ning soared 3.13 percent, Meituan spiked 2.72 percent, New World Development jumped 1.84 percent, Nongfu Spring retreated 1.15 percent, Techtronic Industries shed 0.33 percent, Xiaomi Corporation expanded 1.26 percent, WuXi Biologics perked 0.06 percent and Hong Kong & China Gas was unchanged.

The lead from Wall Street is positive as the major averages opened flat and hugged the line before taking off late in the day.

The Dow jumped 497.46 points or 1.05 percent to finish at 48,057.75, while the NASDAQ added 77.67 points or 0.33 percent to close at 23,654.16 and the S&P 500 gained 46.17 points or 0.67 percent to end at 6,886.68.

The late-day strength on Wall Street came after the Fed announced its widely expected decision to cut interest rates by another quarter point, matching the rate cuts seen in September and October.

While a majority of Fed officials voted to cut rates by another quarter point, three cast dissenting votes for the first time since September 2019. The central bank's latest summary of economic projections also showed significant divisions about the outlook for rates.

Despite the mixed views, traders seem optimistic about the outlook for rates, potentially reflecting hopes for a move dovish regime under President Donald Trump's new Fed Chair choice.

Crude oil prices edged higher Wednesday after the American Petroleum Institute said U.S. crude inventories decreased much more than expected. West Texas Intermediate crude for January delivery was up $0.20 or 0.34 percent at $58.45 per barrel.